BBC makes progress with major IT project through in-house development

The initiative is designed to transform the way in which BBC staff access digital media and will support their move to Salford in May 2011.

The Programme will enable staff to create, use and share video and audio material. It involves the development of new technology to allow staff to manage content efficiently on their desktops, in order to give greater accessibility of digital content for audiences on TV, online and radio.

The Committee of Public Accounts commented that the BBC should not have let the contract for its Digital Media Initiative go to Siemens without testing the contractor against other suppliers, especially as there was a high degree of innovation involved.

The BBC transferred too much financial risk to the contractor given the level of technological innovation involved without enough understanding of Siemens’ project framework.

Since taking the Programme in-house, the BBC has successfully delivered four technology releases and is on course to deliver the complete technology by summer 2011, although this is five months later than planned.

The Committee welcomes the Trust's assurance that it will now take a more challenging approach when considering procurements, but are concerned with the ease with which the BBC found over £50 million in savings to make up for the losses it suffered through late delivery of the project and its own increased delivery costs. This suggests the need for a more vigilant approach to value for money.

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